Ledger completes $100m casualty sidecar amid growing demand for solutions

Ledger Investing, the insurtech and casualty insurance-linked securities (ILS) company, has funded and launched a new $100 million casualty sidecar for a global reinsurer, financing the company’s casualty reinsurance business over three underwriting years on a quota share basis.

Just last month, it was revealed that Ledger Investing had entered into an agreement with ILS manager Fermat Capital Management, which sees the firm manage casualty ILS funds created by Ledger.

This agreement saw Fermat establish its own casualty ILS team, and Ledger Investing expand its casualty ILS capabilities with the launch of two new Cayman Islands domiciled subsidiaries, and also form Ledger ILS Services.

For this new $100 million casualty sidecar facility, Ledger Re SPC, the Cayman-based subsidiary that provides institutional investors access to casualty ILS, provided the retrocession.

Ledger Capital Markets, the company’s securities broker/dealer, served as the sole structuring agent and bookrunner for the deal.

“This is an important development for Ledger as we expand from primarily securitizing MGA-originated portfolios to supporting the long-term capital management of leading (re)insurers. Our experience in capital modeling and structuring was instrumental in developing a flexible and sustainable solution that created value for both sides,” said Samir Shah, CEO of Ledger.

“This transaction underscores the significant investor interest we are witnessing in this diversifying asset class. The capital efficiencies enabled by casualty ILS are driving a growing demand for these products by (re)insurers,” added Alex Freiberg, CEO of Ledger Capital Markets.

Earlier this month, Ledger ILS Services hired Wang Xu, a former executive at Hong Kong reinsurer Peak Re, to lead its new Cayman Islands casualty ILS platform.